Bitcoin surges to $67,000 as Trump-Iran peace deal sends markets into a high

The dollar remained close to its lowest level in 10 days on Tuesday as the agreement to halt the Iran conflict encouraged investors to move back into riskier assets.

The yen traded at 160.29 per dollar, giving up the modest rise it posted before the Bank of Japan announced its decision.

The currency has spent several sessions around the 160 mark, keeping traders alert for possible action from Japanese authorities. The peace agreement has so far done little to ease the pressure on the yen.

The Bank of Japan lifted interest rates to their highest point in 31 years, matching market expectations. The decision passed by a 7-1 vote, which analysts viewed as a sign that policymakers may not fully agree on when another increase should happen.

Attention now turns to Deputy Governor Shinichi Uchida, who is scheduled to speak at 06:30 GMT. Shinichi is expected to maintain the central bank’s position that borrowing costs can rise further, without committing to a timetable.

Several other major policy meetings are also due this week. The US Federal Reserve and the Bank of England will announce their decisions in the coming days, with markets watching for signs that the end of the fighting came early enough to reduce near-term inflation pressure.

The euro stood at $1.1577, below Monday’s 10-day peak of $1.1622. The pound traded at $1.3392.

The US Dollar Index, which tracks the currency against six major peers, was at 99.76. It has gained 2% since the conflict began in late February, during a period marked by an unstable ceasefire and repeated attacks from both sides.

Gold moved higher on Monday, with spot prices up 2.6% at $4,327.82 an ounce by press time. US gold futures finished 2.7% higher at $4,351.60.

The August contract briefly reached $4,390.80, its highest level since June 5. On that earlier date, the metal traded as high as $4,508.70.

Barclays now sees a recovery as increasingly likely and places gold’s fair value near $4,150 an ounce. The bank said the recent decline looks more like a market reset than the end of gold’s broader upward case.

Analysts Lefteris Farmakis and Themistoklis Fiotakis said several forces drove the selloff at the same time. A stronger dollar, rising stock prices and heavily crowded trades all added pressure.

Gold also fell to a six-month low last week as inflation worries grew and the technical outlook weakened. Barclays had already warned in February that prices could pause after an unusually strong run.

The bank said gold has dropped about 20% to 25% in roughly two and a half months. Tensions in the Middle East pushed oil, the dollar, bond yields and equities higher, which outweighed gold’s usual appeal during uncertain periods.

Barclays said the move reflects higher real rates, a firmer US currency and tighter central bank policy rather than any collapse in the forces supporting gold over time.

The bank still expects persistent inflation, policy uncertainty and central-bank reserve diversification to support prices once geopolitical pressure settles.

It also said the trade could become more attractive again if global risks ease and the balance between potential gains and losses continues to improve.

Most crypto-related shares moved higher during the session, although a small group finished flat or in negative territory.

Bitcoin pushed to $67,196 on Monday, gaining as much as 5% and reaching its strongest price in over two weeks after Trump and Iran agreed on steps to stop the fighting and reopen the Strait of Hormuz.

The rest of the cryptocurrency market performed even better. Ether went up by as much as 11% to reach $1,845, while Solana and XRP achieved bigger gains on a percentage basis. However, after last week’s rally, Bitcoin is still down more than 24% year-to-date.

The move followed a rough stretch that sent Bitcoin under $60,000 earlier this month, its weakest level since October 2024.

Selling accelerated after Michael Saylor’s Strategy, the biggest corporate Bitcoin holder, disclosed that it had trimmed a very small part of its position. Heavy withdrawals from Bitcoin exchange-traded funds added more pressure.

Strategy has since returned to buying. The company acquired $100 million in Bitcoin last week using proceeds from common stock sales, after spending more than $100 million on another purchase the week before.

US equities also jumped. The Dow gained 630 points, or 1.2%, and reached a fresh intraday record. The S&P 500 advanced 1.6%, while the Nasdaq Composite rose 2.4%. SpaceX shares climbed more than 7% after gaining 19% during Friday’s public market debut.

According to CNBC, a senior US administration official revealed that a memorandum of understanding had been electronically signed between the two countries on Sunday, while an actual signing ceremony would take place on Friday.

The document sets out a framework for further talks. Iran will not receive economic relief until it takes steps concerning its nuclear program.

The agreement also provides for the immediate reopening of the Strait of Hormuz and the removal of the US naval blockade, although shipping is not expected to return to normal straight away. Officials expect vessel traffic to increase significantly within two weeks.